Cathie Wood Champions Bitcoin as Dominant Cryptocurrency, Diverges from Tom Lee on Ethereum’s Future
September 30, 2025 – Ark Invest CEO Cathie Wood reaffirmed her strong preference for Bitcoin over Ethereum in a recent interview on The Master Investor Podcast hosted by Wilfred Frost. Her candid explanation highlights why she believes Bitcoin “owns the cryptocurrency space” and why it will remain dominant amid ongoing debates about Ethereum’s role in the evolving crypto ecosystem.
Bitcoin as the “Global Monetary System”
Wood underscored Bitcoin’s unique status as more than just a digital asset, describing it as a “global monetary system” defined by a rules-based protocol and a capped supply of 21 million coins — nearly 20 million of which are already in circulation. This scarcity and strict issuance schedule, she argues, are foundational to Bitcoin’s value and its position as the first and most secure layer-1 blockchain, having never been hacked.
“Bitcoin serves three roles,” Wood explained: it is a monetary system with transparent, fixed-supply rules; it is a secure technological breakthrough as the first layer-1 blockchain; and it inaugurates a novel asset class, one Ark Invest has tracked since 2016. This combination, she says, sets Bitcoin apart from all other cryptocurrencies.
Ethereum’s Vital Role but Competitive Challenges
While clearly bullish on Bitcoin, Wood acknowledged Ethereum’s important role in decentralized finance (DeFi), particularly as the native currency powering many DeFi applications. However, she sees challenges for Ethereum due to the rise of multiple layer-2 blockchains—such as Coinbase’s Base and Robinhood’s own layer-2 project—that capture a “disproportionate” share of transaction fees.
According to Wood, this fragmentation among layer-2 solutions could lead to competition that ultimately strengthens the value proposition of their underlying layer-1 blockchains, potentially benefitting Bitcoin more than Ethereum given its stable, rule-based system.
Disagreement with Tom Lee’s Bullish Ethereum Outlook
Wood’s perspective notably contrasts with crypto analyst Tom Lee, who has recently expressed a bullish outlook for Ethereum’s growth, emphasizing its role as a financial infrastructure platform. Wood remains skeptical of Ethereum surpassing Bitcoin’s dominance, primarily due to Bitcoin’s unparalleled security record and its place as the most established cryptocurrency asset class.
Bitcoin’s Investment Potential
Ark Invest has been an early supporter of Bitcoin since 2017 and holds indirect exposure through companies like MicroStrategy. The firm forecasts Bitcoin could surge dramatically over the long term, with Wood predicting it could reach upwards of $2.4 million by the end of the decade, fueled by accelerating institutional adoption and its emerging status as a new asset class.
Conclusion
Cathie Wood perceives Bitcoin as a foundational monetary and financial innovation that will continue to lead the cryptocurrency space. While she recognizes Ethereum’s niche importance in DeFi, Wood’s convictions about Bitcoin’s technological security, scarcity, and market position set a clear narrative of Bitcoin maintaining supremacy in the evolving digital asset landscape.